Compaq Computer Corp sales up 80% for the first nine months of 1987 are continuing strong in the fourth quarter, president Rod Canion reports but the Houston, Texas company would be doing even better if it could get all the 80386 microprocessors it needs. Canion told financial analysts in Boston this week that the outlook for the company remained very strong. In the next several quarters, Compaq has the opportunity for continued strong growth, he declared. Despite the firm outlook, however, Compaq will be conservative in its hiring, so as to be prepared for any unexpected nasties. He also acknowledged that Compaq had lost some market share to IBM in the 80386 market as a result of limitations on its supply of 80386 chips. Shipments in the fourth quarter are up, but Compaq is missing quite a bit of demand because of the lack of availability of the Intel chip. We have been backlogged most of the year and have missed some opportunities that have gone to competitors, he said. Compaq has also been backlogged throughout the year on its fast 80286based Portable 3, which is just now getting to the point where Compaq is meeting demand. However there is a substantial backlog on the 386 Portable launched in September: the new product is very successful, we are not meeting demand, said Canion. As for any worries about the competition, Compaq is unconcerned at speculation that IBM will cut Personal System/2 prices next year. There will certainly be IBM price cuts, he reckons, and there will likely be price cuts even by Compaq, but these will not be substantial.
COMPAQ COMPUTER “COULD GROW EVEN FASTER” BUT FOR SHORTAGE OF 80386s
